Glacier Reinsurance A.G. has launched a primary insurer, Glacier Insurance A.G. to write marine and energy, property and casualty, aviation, space and war and terrorism business.

Glacier Insurance is based in Liechtenstein and is licensed by the country's Financial Market Authority to underwrite insurance policies in Europe, Glacier said in a statement.

The company is expected to write gross written premiums of $20 million (?15.6 million) in its first year of business, according to the statement.

The new company will be protected by a quota-share reinsurance arrangement provided by Glacier Re and a stop-loss reinsurance agreement.

Glacier Insurance is the next step in the natural evolution of the Glacier Group. It enables us to extend our product offering to direct insurance customers in Europe," said Robbie Klaus, chief executive officer of Glacier Re and Glacier Insurance.

"Furthermore, it provides us with a platform to diversify our portfolio, further reducing overall group volatility," he added.

Glacier Re was established in Pf?ffikon, Switzerland, in 2004. It was primarily capitalised by hedge funds.